Lack of Inventory is Holding Housing Market Back
Fannie Mae’s Doug Duncan, the company’s Chief Economist, had some interesting insights on today housing market. Especially as more Boomers are deciding to “age in place” instead of moving to retirement communities like their parents.
Plus, Gen X’ers who got caught up in the Great Recession are staying put and adding on to their existing homes. In Western North Carolina, you see the same thing happening. Inventory is low and home prices are on the rise.
So, why aren’t builders simply building more homes? Great question and he addresses that below.
From Housing Wire:
Low mortgage rates have spurred an increase in mortgage applications (although it should be noted that applications have fallen in the last two weeks) and refinances, but despite these gains, America’s home sales remain below historical averages.
So, what’s the deal? Well, a lack of housing inventory is one big factor. According to a report from Trulia, the U.S. inventory of homes for sale was flat in the first quarter, compared with a year earlier, highlighting a mismatch between buyer demand and housing supply.